21Shares drops Ark from ETH ETF as remaining applicants meet SEC deadline 21Shares drops Ark from ETH ETF as remaining applicants meet SEC deadline
Franklin Templeton is the first to announce a sponsor fee of 0.19% for the ETF.
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Updated: Jun. 1, 2024 at 12:22 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Six companies updated their spot Ethereum ETF S-1 registration statements on May 31, with 21 Shares notably dropping Ark Invest from its filing.
The relevant filing renames the “Ark 21Shares Ethereum ETF” to the “21Shares Core Ethereum ETF.” It also removes all mention of Ark Invest from its text, whereas previous submissions described Ark Invest as the fund’s subadvisor.
Ark Invest has not commented on the change.
Other amendment details
Bitwise, Fidelity, Invesco Galaxy, VanEck, and Franklin Templeton also filed amendments.
Franklin Templeton’s amendment includes a 0.19% sponsor fee, making it the first issuer to list a percentage-based sponsor fee.
Bloomberg ETF analyst Eric Balchunas noted the absence of a “fee war” among applicants compared to the competitively reduced fees and temporary discounts offered for the spot Bitcoin ETFs before launch.
The amended filings affirm that companies involved in each fund will not engage in staking. The filings also initially prohibit in-kind creations and redemptions but acknowledge the possibility of such transactions depending on future regulatory approval.
Some filings newly state or restate initial seed sale proceeds. Many state ticker symbols for the first time.
Earlier amendments
The SEC’s approval of 19-b4 filings on May 23 has brought spot Ethereum ETFs closer to reality, with experts predicting a June-end launch.
BlackRock was the first to file an amendment to its iShares fund on May 29. It added several details, such as seed purchase amounts, additional partners, and flat sponsor fee maximums. Grayscale filed an amendment to its S-3 statement on May 30.
The latest amendments mean that all prospective spot ETH ETF issuers have satisfied the SEC’s end-of-month deadline. The regulator will now comment on the applications, which may require further amendments before the funds can finally launch.
Balchunas expects the process to take a few weeks, with the funds projected to launch by July 4 at the latest.
Mentioned in this article
Ethereum 
21shares 
Franklin Templeton 
Ark Invest 
VanEck 
Bitwise 
Fidelity Investments 
Grayscale Investments 
Eric Balchunas Author 
Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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In this article
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
21shares
21Shares is a Swiss provider of crypto- currency exchange-traded products (ETPs).
Franklin Templeton
Franklin Resources, Inc., commonly known as Franklin Templeton, stands as an American multinational holding company rooted in the world of finance.
Ark Invest
ARK Investment Management LLC (ARK Invest) holds a precision lens on thematic investing.
VanEck
VanEck is a global investment manager with offices around the world, including New York, Australia, China, Germany, Netherlands and Switzerland.
Bitwise
Bitwise Asset Management pioneered the first cryptocurrency index fund and is the leading provider of rules-based exposure to the cryptoasset space..
Fidelity Investments
Fidelity Investments Inc., commonly referred to as Fidelity, is a multinational financial services corporation based in Boston, Massachusetts.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
Eric Balchunas is an American author, ETF analyst, and Senior ETF Analyst at Bloomberg Intelligence.
